Volkswagen shifts gears: New American investments amid tariff woes
The turmoil around tariffs has led the German corporation to plan on moving part of its business across the ocean. The corporation's CEO, Oliver Blume, held talks with American authorities. He described them as "fair and constructive."
The increase in U.S. tariffs on products imported from Europe has prompted many European manufacturers to consider relocating parts of their production to the USA. One of them is Volkswagen. The Germans have just announced significant investments across the ocean.
According to "Reuters," German car manufacturers, including Volkswagen, have been in talks with Washington about a possible tariff agreement, aiming to leverage their U.S. investments and exports to mitigate the impact.
The head of the corporation, Oliver Blume, stated that Volkswagen's main contact in Washington is U.S. Commerce Secretary Howard Lutnick. He added that he agreed to keep all details of the discussions confidential.
Unofficially, it is mentioned that existing Volkswagen factories in the USA could be joined by Audi production facilities, allowing the Ingolstadt brand to avoid higher tariff rates.
Blume, as quoted by "Reuters," said that The Volkswagen Group already employs over 20,000 people directly and over 55,000 indirectly in the United States and highlighted an investment of $5.8 (CAD 8) billion in the American company Rivian.
Such investments should be considered when making decisions about tariffs, Blume added, expressing hope that Brussels and Washington will reach a broad agreement for all industries.
